Rustam Minnikhanov: ''We attribute great importance to the development of the Islamic economy''

The ''Russia – Islamic World'' Group signed an MoU with the Dubai Islamic Economy Development Centre for developing an integrated Islamic economy strategy

Rustam Minnikhanov: ''We attribute great importance to the development of the Islamic economy'' Photo: tatarstan.ru

Last year, the demand for Islamic finance instruments in Russia increased by 10% compared to 2016. Following the trend, key Russian banks are launching special banking products adapted for principles of Islamic economy. The Group of Strategic Vision ''Russia – Islamic World'' (RIW) will cooperate with the Dubai Islamic Economy Development Centre (DIEDC) to exchange expertise and best practices in the field of Islamic economy.

A memorandum of understanding (MoU) signed by the RIW Group and the DIEDC allows Russia and the UAE to play a more influential role in the emerging economy of East Asia, considers Thomson Reuters Zawya. Under the MoU, the DIEDC is supposed to share its experience in developing an integrated Islamic economic strategy. The parties will also exchange knowledge and insights related to Islamic banking and finance and the halal industry. The DIEDC and the RIW Group plan to co-host informative workshops in partnership with education institutions of Tatarstan and Dubai and to organise exhibitions presenting diverse sectors of the halal industry.

The RIW Group includes more than 50 representatives from 33 countries of the Islamic world. It was created in 2006 when Russia joined the Organization of Islamic Cooperation (OIC) as an observer. Currently, the group's chairman is President of Tatarstan Rustam Minnikhanov. Speaking at the MoU signing ceremony, he emphasised the importance of Islamic economy development due to the growing demand for Islamic finance instruments in Russia. Minnikhanov, whose region has established strong bilateral relations with the UAE over the past years, believes that the partnership with the DIEDC will stimulate pioneering principles of Islamic economy in the country. ''We attribute great importance to the development of the Islamic economy and therefore find it necessary to expand the boundaries of our cooperation,'' said the president.

Dubai Islamic Economy Development Centre and Group of Strategic Vision ''Russia – Islamic World'' signed MoU for cooperation in field of Islamic economy. Photo: tatarstan.ru

Emerging eastern markets that achieved remarkable growth amid the global financial crisis have the potential to join the ranks of the world's leading economies, considers Minister of Economy of the UAE and Chairman of the DIEDC Sultan bin Saeed Al Mansoori. He also noted that the bilateral relations between Russia and the UAE had strengthened since 2014 when Kazan hosted an international summit on economic cooperation between the Russian Federation and countries of the OIC as well as the first UAE-Tatarstan Investment Forum.

According to the RIW Group's Coordinator Veniamin Popov, the Russian population includes more than 20 million Muslims. Given the increased demand for Islamic financial products, the group could build an extensive network of partners from the whole Islamic world.

By Anna Litvina